Investors flock to ABC’s inaugural $500m bond

Agricultural Bank of China has sold its maiden dollar bond, achieving much tighter pricing than expected in spite of a slightly alleviated rates environment.

Agricultural Bank of China ABC Hong Kong branch priced its first ever $500 million five-year note on Tuesday, receiving a sizable order book that enabled the issuer to tighten pricing despite a higher rates environment.

The Reg S notes, which had an initial price guidance of Treasuries plus 170bp, priced 20bp tighter at Treasuries plus 150bp, according to a term sheet seen by FinanceAsia. This was achievable once the order book crossed $1.8 billion by early afternoon, according to a source.

“The reception and book size outcome was great, which resulted in a final pricing that met their expectations,” said the source close to the deal....

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